The Coming Frightening Financial Chaos And Collapse

Because the colossal debt cannot be paid back in a deflationary environment, there will be an utter collapse of the financial system.

Because the enormous debt cannot be repaid by printing money (only making matters worse), there will be a complete collapse of the financial system.

Either way, deflation or reflation, the financial system appears to be screwed…

The masters of the system know that in a deflationary environment, they will ultimately lose control when the resulting financial ‘greater depression’ leads to chaos and total breakdown.

They know that money printing at present levels no longer has any substantial positive effect (it’s all ‘baked-in’), and they know that massive money printing will lead to hyperinflation. Printing money does not print prosperity.

They also know that they need to maintain ZIRP (zero interest rate policies) because any increase in interest rates will balloon the already high payments on the gargantuan debt – spiraling the already bad situation out of control.

Either way, the financial system is doomed to failure and chaos.

There is no way of avoiding it.

Collapse.

They (the consortium of the federal reserve and central banks along with their European counterparts) have been managing a fine line throughout the existing financial crisis, and many believe they have exhausted all of their ammunition. All that is left is deceit and lies as they manage perceptions while twisting the facts and numbers, attempting to disguise their continued (necessary) debt creation to stave off collapse.

They absolutely cannot deflate. That would be their most terrifying position and they will ultimately do everything in their power to not allow that to happen.

They know the debt will never be paid off, but they hope that they can manage the public’s perception of the burgeoning and surging debt while they attempt to manage inflation (currency devaluation).

Inordinate money printing leads to crumbling currencies, and many countries are doing it.

Despite efforts to hide it, there are clear signs of inflation bubbling into the psyche of the public.

While the cost of food is not heavily represented in the government consumer price index, it is certainly one of the major costs of living for many middle class American families – most of whom know that food prices have been stealthily moving higher and higher (while packaging is smaller and smaller).

As an example, the following commodities futures chart of milk, cattle, cocoa, coffee, soybeans, and oats, are a snapshot of what has been happening since as recent as 2013-NOV till now.

source data: tradingcharts.com

As the former power base of middle class America continues to be strangled by the accumulating effects of stagnant wages, debt, a devaluing dollar and steadily higher costs of living – the financial future is bleak.

While the powers-that-be continue to juggle their efforts to prolong the inevitable demise, the $1.4 quadrillion derivatives bubble looms ominously in the background – so incomprehensibly enormous that most people cannot even see the elephant in the middle of the room…

The question is, are you willing to blind your eyes to the reality of what has been going on here, in the hopes and expectations that our masters will successfully steer the great ship America around the iceberg dead ahead? Are you serenaded by the lovely music playing on deck?

Another question is, even if you are one of the relative minority who believes we are heading for financial calamity, are you convinced that our masters will prolong and stretch out our demise such that it will be relatively painless on the way to the bottom?

Or are you one of those in the greater minority who believes that this ship is probably going to sink fast, perhaps triggered by a yet unforeseen gash in her hull as we bash the iceberg?

34 Comments

the ship already hit the iceberg, but before it hit the smart ones(prepared) already got on the life boats, the don’t worry about crowd(sheeple) who were left aboard figure the crew would fix the problem and they would be saved…but the crew(government elite) also left… without them, so they sat back and listen to the music because that is all they know, like sheep grazing in a field, or in this senario, shark bait!

I’m with the Iceman here. Back in the day, I used to pep talk folks and work toward getting them prepared, but now I quietly do what I have to do, because I don’t want a bunch of unprepared idiots at my door begging for food because tehy were too busy camping out to get the latest 800 dollar iPhone to think about prepping. I think the ropes have been released and the balloon is going up. DHS just put out acquisition requests on FedBizOps for ANOTHER quarter billion rounds of ammo. So, either they think Canada and Mexico are going to invade, or they intend to inter those of us who follow their commands and kill the rest. The ammunition they bought is largely hollow point, which is banned by the Geneva Convention, so it isn’t for Iraq or Afghanistan, it’s for us.

I just hope that when the SHT does his the F that those of us who have been prepping and who love liberty are ready to band together, refuse the FEMA camps, and stand together, defend together, share skill sets, etc

Not sure about the band together bit sarge. OPSEC says we don’t even let each other know who we are for the most part. I don’t really see it happening. I think that we wiil all just die alone or at least most of us.

Im with ya Sgt Bill. Perhaps at first we must isolate and prevent the hoards from identifying the prepared, but at some point, survival requires finding the right people with the right skill sets and banding together. It takes a village.

No one will survive trying to go it alone. Muraders will form and kill and steal to survive. you will need numbers to survive the collapse. best to get prepared and find like minded people and help each other.

The writing is on the wall. But too many ignore it thinking that “it could never happen here”. I actually feel sorry for those who will be trapped in all those big cities, whether they are on the East coast or the West coast. My children are in college and we have talked about where they would work when they get their degrees. Both of them said they would take less money if it meant they wouldn’t have to live in a big city. They both came to the same conclusion on their own from what they see happening in the world.

I see the MSM actually mentioned the China-Russia gas/oil deal. What they don’t mention is that the transaction is not in US dollar. Bye-bye petrodollar. Bye-bye reserve currency status.

I also noticed the EIA kind of missed on the Monterey shale reserves. Not the 13.7 billion barrels they projected, but about 600 million barrels. A 96% miss. The Monterey reserves were about 2/3 of all reserves. Where are these idiots talking about US energy independence?

Not to mention that TEPCO is now releasing all the highly radioactive water they have been storing in the 1000s of leaking storage tanks at Fukushima into the Pacific right now and will just allow all the radioactive “stuff” to continue straight into the ocean from now on.

Did I mention that Russian and Iran have signed a deal to build 8 more nuke reactors in Iran.

Almost forgot. The US last year added $500 billion to GDP (about 1 point) by factoring in “intangibles”, ya know, like good ideas. Not to be outdone, Italy just released they will add illegal drugs and prostitution to their GDP calculations.

Now, if we could just figure in how much the TBTF/TBTJ banks and politicians steal from the taxpayer, well, we would outperform China. USA,USA.

I believe TPTB will prolong the death spiral as long as possible. When their gimmicks finally fail it will be a painful rapid crash. I started prepping after Sandy. Way too late for sure, but I got my wife on board and we are doing as much as we can. As a first responder in a (gasp) big east coast city, I can say without a doubt this place will be hell when atm’s and ebt cards don’t work.

I must say, the risk of financial meltdown (be it fast or slow or in-between) has been my Number-One reason for having become motivated to be better prepared.

That, coupled with the realization that the vast majority are afflicted with normalcy bias – which will put the rest of us at greater risk, is a firm motivator for me.

I certainly hope that the powers-that-be are able to control this crash landing into a long and drawn out disaster – so that I (and you) can live our lives without a high degree of systemic financial collapse.

However I am very skeptical of a controlled and minimized outcome, because I have learned over the years that there are many unexpected events that can turn events upside down very quickly, and therefore I prepare for the worst.

I do not believe for a minute that the elite can hold it all together forever. This balloon is far too big, and it’s going to pop. I don’t know when, and I don’t know how big the hole will be. But if I do nothing – then I am the idiot. I see what’s coming, so I prepare. I hope you are doing something…

Everyone knows that the financial crash will be horrendous. T.P.T.B. most of all. I would suggest that every morning those in the controlling circles get down on their knees and hope it doesn’t happen that day.

A collapse will be put off until some black swan comes along.

Only a short time ago, a major Fed personality put forward a figure of 90% population die off in the event of a major financial crash.

Ken , some state governments fiscal year starts in July and some states fiscal year starts in October , along with some private companies following the same trend , do you think we might see some bigger signs of the coming collapse starting shortly ? I have noticed that there is still a good number of bank closing s happening , there has also been cut backs in some larger retail companies too . Be prepared and ready . Keep your powder dry .

they were discussing the huge numbers of prisons/private prisons/SECRET prisons in the U.S.. Also, claimed there were huge numbers of empty buildings earmarked to possibly be used for prisons, if the govt decided there was “need”.

another thing which was concerning/shocking, were suggestions that FEMA operations could easily be “dry runs” for authorities, to use in situations authorities might want to isolate “groups” etc.

they also claimed (no idea if this is true), that when a disaster hit, and FEMA did set up “emergency” “camps”, as each person registered, they were firmly instructed to not talk to any media….???

also, that these FEMA emergency camps were heavily staffed with military persons…and high razor wire fencing, with the sharp side to the inside of the camp…Therefore with the appearance (intention?) to keep folks “in”.

many suggestions that this might all be “practice” “skill building” “dry runs” for when / if authorities might want to isolate large groups of people….

To generally answer your question, in my opinion it’s prudent to become more self-sufficient as best you can, given one’s own situation.

Learning how to successfully grow a vegetable garden. Learning how to properly use canning methods to preserve your foods (and other methods of food preservation). Knowing how to harvest seeds from various heirloom vegetable plants to be used for next year. Have a drinking water plan. Have a security plan. General preparedness.

Regarding what to do with one’s own currency, in my opinion I would apply a portion of it to your preparedness plans – the portion being whatever you feel is appropriate. I would also pay down debt as best I could (if that is an issue). Only if there is excess dollars would I also purchase some precious metals for wealth preservation – some silver and gold coins – liberty eagles or other well recognized coin. Despite the fact that the stock market has been making new highs – I WOULD NOT BE IN THE STOCK MARKET. But that’s just my opinion. My gut screams no, and all common sense points towards the twisted distorted aspects of the market’s recent gains, but for all I know it could continue on to 20,000. I’m just not comfortable with that risk. I also recommend to always have some amount of cash (under the mattress, as you said – or in a home safe 😉 )

It is probable that in an economic collapse that there would be a period of time from hours to days and even weeks where the indicators where there for all to see but the system had not yet collapsed. That is the ATM’s still work the stores are full of goods and the retailers still consider the dollar to be worth a dollar’s worth of goods. Ideally you could go to your bank(s) and draw out your money and go to the supermarkets and big box stores and buy food and other useful goods. It would be equally true under these conditions that you would have time to load up your SUV(s) with stuff from your home and drive to your bugout location or your parents home in a small town. An economic collapse would be the easiest SHTF situation to do this as compared with an EMP or a nuclear attack etc. Of course you should be preparing now for an uncertain tomorrow, but if you are like me you have not committed 100% of your assets to something like this because no one really knows what or when it will be. But if it goes down in a way that gives you one last bite at the apple be prepared to do it.

The 2007 crisis would have gone bad in less than 8 hours if the U.S. Government and the Fed not stepped in. Total collapse of the financial system in the U.S. and Europe in 12 hours – the rest of the world 24 hours.

Two points: In 2007 the government should have let the chips fall where they may. They didn’t “fix” it they painted over it with money. Borrowed money and printing press money. Most of that money went into pockets it was never intended for. If they had let that “crash” play out instead of bailing it out we would be in the third year of a recovery today. Instead we are in a depression. The long lines of people needing food are getting their food from food stamps so you don’t see them. The long lines of the unemployed are being given endless unemployment compensation so you don’t see them either. But sooner or later that Keynesian solution will create the worst economic collapse the world has ever seen.

The actual speed of the collapse will be one thing and the perceived speed by the man in the street will be another. It may collapse in 24 hours, I doubt it, but it could. But there may still be stores selling food and taking dollars at the old rate for days and that is worth being prepared for. Will it all collapse to nothing in 24 hours? I honestly don’t know. The “experts” in 2007 didn’t know and still don’t. And no one today knows. THAT is exactly what creates the possibility of one last chance to buy food and necessities.

Had the feds let the chips fall where they may back in 2007, we would be in the collapse/post-collapse right now. Few know how scarily close we came…or more accurately, few want to know. That being said, you are right in the fact that they didn’t “fix” anything…merely postponed the pain. The questions now are, did they buy us enough time, and do they possess the knowledge, skill, and willingness to do what it takes to truly turn things around to any significant degree. Given that they’re still selling credit as the instrument that will dig us out of this mess…that they introduced the ACA, a tremendous drag on profit and employment, in the midst of the carnage…that they continue to introduce market instability with ever changing policies and procedural/constitutional bypasses…that they continue to look for new tax instruments as opposed to restoring the tax base…that they continue to tout government employment as jobs creation…blah blah blah…I would venture to guess that the answer is no.

Many politicians and bureaucrats agree with you that the crisis was so big that only vast amounts of money could prevent collapse. The question is were they right. The very fact that it was politicians and bureaucrats who were telling us this compunded by the only possible “fix” being billions and trillions given away to their friends and supporters should make you wonder. I’m not buyng it. Yes there would have been a “collapse” of some sort but would it have been a recession, a depression or something else? Who knows. But regardless of what it was or was going to be the proper course of action was to bite the bullet and let the failing companies and banks fail and allow the capitalist system to fix it which it would have. Probably within 22 months which is typical for recessions since 1945. The problem is that what they choose to do instead has set us up for something far worse AND to make matters worse the clear intent of our government is to continue the very policies that will make it worse and prolong it. So how in any way would it have been worse to let the chips fall where they may back in 2008?

I did not contend that what they did fixed anything. In fact, I stated it only postponed the pain. As for how could it have been worse had they let the chips fall back then, evidence points to much more than a recession as the result…much more…probably enough so that it would have been virtually impossible to “fix” anything. Everything I’ve read on the topic, indicates we were possibly only days away from conditions that would have led to a major run on the banks. Obviously, the correct thing to do would have been to address the issues prior to the bubble bursting, but that doesn’t buy votes. The main problem with the measures that were taken, was with the scale, duration, and lack of follow-up. There are more options than doing one thing, or doing nothing. The answer would have been to inject enough $$ to buy a little time, and then move straight away to actually correcting the issues…corrections that should have been made long before things fell down in 2007/2008. However, all they did was simply ride the wave it created. Given they still refused to correct the issues during the brief reprieve of the ensuing years, I agree that it’s just a matter of time now.

Blood… That’s it. Its going to be bloody, its going hurt.
If you think you can hide with your “preps” at any point, you’re
already worthless to what will happen. You can’t get away from it.
You do what needs to be done when the ball rolls or we all fail alone.
Theres only one way this gos.
Its sad, its a shame. But its what it is.

The whole system will eventually collapse and both China and Russia will go with it. The economies are too interlinked for one part of the system to survive and not the other.

The bigger question is, will TPTB bring the planet towards a war and will it go nuclear? If they know what the end game is typically war usually follows a miserable economy. It’s what got the US out of the 30’s Depression.

Its amazing how many of my friends are completely clueless. I hate to say it but My Friends are idiots. They just don’t have a clue. I try and talk to them about Quantitative easing, The Derivatives bubble, National debt and unfunded liabilities and they dont even know what im talking about, nor do they seem to care. I only have one friend that takes it seriously.

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